The transformation to a low carbon economy is inextricably intertwined with profound social and economic change, yet to date little has been done to holistically assess and manage these expected impacts. As the Paris Agreement clearly outlines, limiting the increase in global temperatures has to be done within the context of “the imperatives of a just transition of the workforce and the creation of decent work and quality jobs.”
This research is intended to contribute to the development of a cohesive approach to a just transition by identifying investor expectations of listed companies. It defines the investment risk of an unjust transition, includes expectations of company actions and reporting as they approach a just transition, and sets out public policy recommendations to support a just transition.
The investment risks of an unjust transition highlight the need for investors to assess wider systemic risks, and for a novel policy response to the systemic issues such risks raise. As engagement undertaken as part of this project identifies, if a just transition is not achieved, the following investment risks may arise:
